China New Higher Education Group (HKG:2001) Full Year 2024 Results

Key Financial Results

• Revenue: CN¥2.41b (up 14% from FY 2023).
• Net income: CN¥756.1m (up 7.5% from FY 2023).
• Profit margin: 31% (down from 33% in FY 2023). The decrease in margin was driven by higher expenses.
• EPS: CN¥0.49 (up from CN¥0.45 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

China New Higher Education Group Revenues Beat Expectations

Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) was mostly in line with analyst estimates.

In the last 12 months, the only revenue segment was Provision of Education Services contributing CN¥2.41b. Notably, cost of sales worth CN¥1.54b amounted to 64% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to CN¥113.4m (74% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of CN¥33.9m. Explore how 2001's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Consumer Services industry in Hong Kong.

Performance of the Hong Kong Consumer Services industry.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 3 warning signs for China New Higher Education Group (1 shouldn't be ignored!) that you need to be mindful of.

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